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Southwest Airlines CEO Gary Kelly: ‘If things don’t improve, this just can’t continue’
Posted on 9/7/20 at 10:25 am
Posted on 9/7/20 at 10:25 am
LINK
Interesting interview with the CEO of Southwest Airlines.
His opinion on business travel languishing for a decade has to be disconcerting for the hotel industry.
quote:
It’s 34 years in the business for me. It was a long decade after 9/11 and it was a long slog after the Great Recession in 2008. Absolutely, we’re prepared for a long recovery here.
But I’m certainly not bullish that business travel is going to bounce right back. In fact, I would argue that relative to a normal recession and recovery scenario, this will be twice as long. I wouldn’t be surprised to see business travel languish for a decade before it gets back to 2019 levels. So yes, we’ll be prepared for that.
Interesting interview with the CEO of Southwest Airlines.
His opinion on business travel languishing for a decade has to be disconcerting for the hotel industry.
6
Posted on 9/7/20 at 11:06 am to Paul Allen
Hope this was all worth it to the politicians to frick everyone over for Covid
Posted on 9/7/20 at 11:09 am to Lawyered
Yep, Trump screwed the pooch on this.
Posted on 9/7/20 at 12:16 pm to 8thyearsenior
quote:
Yep, Trump screwed the pooch on this.
Posted on 9/7/20 at 12:21 pm to notiger1997
quote:
Leadership: Whatever happens, you're responsible. If it doesn't happen, you're responsible.
Straight from the horse's mouth. Trump is responsible.
Posted on 9/7/20 at 12:34 pm to 8thyearsenior
quote:is he responsible for you being an idiot? It sure is hot outside. Sounds like trumps fault as well.
Straight from the horse's mouth. Trump is responsible.
Posted on 9/7/20 at 1:12 pm to 8thyearsenior
quote:
Yep, Trump screwed the pooch on this.
Go on.
Posted on 9/7/20 at 1:45 pm to HailToTheChiz
I don't think this is all bad honestly. How many business travelers are unhappy their travel time is reduced? Not many...How many companies are saving a lot of money due to virtual meetings now? To a large extent, this move has been in the works for awhile Covid just gave it a huge kick in the butt.
Trends change, I'm not feeling bad for the airlines or hotels. Ultimately, if people have more time due to working less and traveling less for work they'll put that time into leisure travel.
Trends change, I'm not feeling bad for the airlines or hotels. Ultimately, if people have more time due to working less and traveling less for work they'll put that time into leisure travel.
Posted on 9/7/20 at 3:57 pm to baldona
quote:
How many business travelers are unhappy their travel time is reduced? Not many...
With all due respect, that’s one heck of an assumption. Salespeople and marketing/manufacturers reps are extroverted people that like to entertain clients and travel.
Sure, maybe not every single day of the week as work/life/family all have a balance but I know several salespeople in various industries that are beyond excited to resume pre Covid-19 travel.
quote:
they'll put that time into leisure travel.
Another assumption. And what if they don’t? RV and camping could be the new norm but that would decimate airlines and hotels.
This post was edited on 9/7/20 at 3:59 pm
Posted on 9/7/20 at 4:30 pm to Paul Allen
He is wrong.
Business travel is predicated upon business and the opportunity to make profit. Business is always looking for a competitive edge, so the first company to loosen restrictions and start flying employees will start a domino effect. No one is going to allow themselves to fall behind in the marketplace.
People have short memories and assuming the availability of routes and planes, numbers will be back next year
Business travel is predicated upon business and the opportunity to make profit. Business is always looking for a competitive edge, so the first company to loosen restrictions and start flying employees will start a domino effect. No one is going to allow themselves to fall behind in the marketplace.
People have short memories and assuming the availability of routes and planes, numbers will be back next year
Posted on 9/7/20 at 5:26 pm to Barrister
I agree 100%
Posted on 9/7/20 at 9:30 pm to Barrister
I guess the real question is how much business travel was not really needed. How much travel will companies realize was not really necessary and can be cut out to save costs.
Posted on 9/7/20 at 9:48 pm to Dizz
quote:
How much travel will companies realize was not really necessary and can be cut out to save costs.
Million dollar question. I guess some job descriptions and roles as we knew them are going to undergo drastic changes.
Posted on 9/8/20 at 7:06 am to Paul Allen
I get some people like to travel, but take a look on TD and over and over you see people happy to work from home and not travel. Yes there’s some that like to go to the office, but much more happy to be traveling less than wishing for more.
It’s certainly a compromise to a degree. I agree businesses will do everything for an edge.
My dad works for the DOD and I’m hoping they stop traveling so much. He’d routinely fly to DC or St Louis for a one day meeting which meant a round trip flight and 2 hotel rooms. Most DOD and government stuff sure as hell doesn’t require in person meetings. I said most not all. DOD isn’t going to switch to virtual meetings unless it’s a safe proven tactic. Now certainly classified meetings will be different.
All I’m saying is the OP is a CEO talking about the past and expecting things to stay the same instead of adjusting their business model to changing times.
ETA: how much past travel was because “that’s the way we always did it” instead of the way it needs to be done? No one knows, but I’d guess a reasonable portion.
It’s certainly a compromise to a degree. I agree businesses will do everything for an edge.
My dad works for the DOD and I’m hoping they stop traveling so much. He’d routinely fly to DC or St Louis for a one day meeting which meant a round trip flight and 2 hotel rooms. Most DOD and government stuff sure as hell doesn’t require in person meetings. I said most not all. DOD isn’t going to switch to virtual meetings unless it’s a safe proven tactic. Now certainly classified meetings will be different.
All I’m saying is the OP is a CEO talking about the past and expecting things to stay the same instead of adjusting their business model to changing times.
ETA: how much past travel was because “that’s the way we always did it” instead of the way it needs to be done? No one knows, but I’d guess a reasonable portion.
This post was edited on 9/8/20 at 7:09 am
Posted on 9/8/20 at 7:43 am to Paul Allen
Like I've been saying....the air travel industry, worldwide, will never see another year like 2018-2019.
Posted on 9/8/20 at 4:45 pm to Paul Allen
quote:
disconcerting for the hotel industry
It depends on the company. Some cater to business travellers, some do not. For some that would certainly hurt though.
Airlines would suffer the most though.
Posted on 9/8/20 at 4:46 pm to Barrister
quote:
People have short memories and assuming the availability of routes and planes, numbers will be back next year
Agreed
Posted on 9/8/20 at 4:56 pm to Lima Whiskey
quote:
People have short memories and assuming the availability of routes and planes, numbers will be back next year
Not in today’s 24/7 news and social media world that we live in.
Posted on 9/8/20 at 5:12 pm to Paul Allen
They won’t care in six months, that’s what he’s saying.
Posted on 9/8/20 at 6:42 pm to Lima Whiskey
I guess we’ll see in 6 months.
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